Samsung has decided that Apple will have to start paying a significant amount more for the mobile processors that go into their iPhones and iPads.
Apple’s main rival, Samsung, has reportedly begun demanding an extra 20 percent from Apple for each processor Apple purchases from them. Sources say that although Apple doesn’t wish to accept the new terms, there is currently no other company that would be a good fit for Apple in terms of cost, performance and production. Apple and Samsung have a contract that keeps Samsung manufacturing at least some of Apple’s parts throughout 2014.
Apple has reportedly purchased over 200 million processors from Samsung this year alone, and these numbers can be expected to keep increasing for as long as Apple’s products grow in popularity. Apple is said to be looking at certain Taiwanese companies, such as TSMC and Kinsus Interconnect Technology Corporation, to begin taking over this massive production job beginning as early as 2013. Switching to one of these Taiwan companies would also offer a significant decrease in cost to Apple.
Apple and Samsung’s relationship certainly isn’t over though, as the Korean company continues to produce panels for various Apple products such as the new iPad mini, and the two companies can almost always be found spending time together within a court house.
